Income Tax: All you should know before filing ITR

The last day to file the income tax is just around the corner, which is July 31. Taxpayers are supposed to pay tax via accounts opened at one of the 28 banks where payment of income tax is facilitated by the income tax (I-T) department. People can pay taxes through e-portal as well.

Banks on the list

The banks that are on the list are Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank and IDBI Bank. 

Apart from this, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Karnataka Bank, Punjab National Bank, Punjab & Sind Bank, RBL Bank, State Bank of India, South Indian bank, UCO Bank, Union Bank and Dhanlaxmi Bank are also on list.

Key documents required before filing the income tax

PAN (Permanent Account Number) card and Aadhaar

PAN is one of the important documents that are required while filing income tax. Taxpayers must mention the PAN and Aadhaar on the e-portal. 

Apart from this, a person needs to have correct bank account details with income proof and Form 16 (for salaried individuals).

Salary slips along with other documents need to be furnished. Income from other sources (rental income, interest income, etc.) along with Form 16A (for income from sources other than salary).

Income Details

Ensure all sources of income are accurately declared, including salary, interest, rental income, capital gains, etc. Use Form 26AS to verify income details and tax deducted at source (TDS).

Deductions and Exemptions

Claim deductions under various sections (like 80C, 80D, 80G) for investments, expenses, donations, etc. Ensure you have proper documentation and proof for these deductions.

Property Details (if applicable)

A person has to provide the details of the property owned. Home loan certificate (interest and principal repayment) along with Form 26AS (tax credit statement).

In addition to this, the previous year's tax return (for reference) has to be submitted along with the form.

Things to keep in mind when you file Income Tax

Correct Form: Use the appropriate ITR form based on your sources of income and residential status. Different forms cater to different types of taxpayers (e.g., ITR-1 for salaried individuals, ITR-2 for individuals and HUFs with income from multiple sources).

Verification: After filing your return online, verify it using Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed physical copy (if required). A verified return is essential for processing.

Keep Records: Maintain records of all documents related to income, investments, deductions, and tax payments for at least 6 years. These may be required for scrutiny by tax authorities.

It is always advisable to seek professional help. If you find tax laws confusing or have complex income sources, consider seeking assistance from a tax consultant or chartered accountant to ensure compliance and maximize tax benefits.